Apollo Micro Systems Ltd. (APOLLO) AI Stock Analysis

• Market Cap: ₹72.99B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 98.5
• Beta (1Y): 1.48
• Revenue Growth: 39.76%
• EPS Growth: 55.23%
• Country: IN
• Employees: 358
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 0.72
• Shares Outstanding: 354,391,700
• 10 Day Avg. Volume: 522,593
• 30 Day Avg. Volume: 1,192,422
• PEG Ratio: 1.29
• Price to Book (P/B): 5.98
• Price to Sales (P/S): 6.46
• P/FCF Ratio: -42.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.1
• Revenue Forecast (FY): ₹8.43B

• Rating: 59 Neutral
• Price Target: ₹215.00 ▼(-20.94% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Apollo Micro Systems Ltd. shows strong financial performance with robust revenue growth and improving profitability. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests the stock is overvalued, which could limit potential gains. The lack of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Strong revenue growth

Sustained 40%+ revenue growth indicates strong demand and successful program wins in defense/aerospace. Durable top-line expansion improves scale economics, supports supplier leverage and backlog optionality, and strengthens the company’s position over the medium term.

Improving profitability and margins

Net and gross margin expansion reflect better pricing, cost control and operational leverage in mission-critical product lines. Higher sustainable margins enhance reinvestment capacity for R&D and manufacturing, boosting long-term competitiveness and cash conversion.

Operating cash flow turned positive

Conversion of earnings to positive operating cash flow shows the business is generating real cash from contracted work and services. This reduces reliance on external funding, supports working capital through long program cycles, and improves financial resilience.

Negative Factors

Negative free cash flow due to high capex

Persistent negative free cash flow caused by heavy capital spending reduces liquidity available for discretionary investments or buffers. If elevated capex continues, the company may need external financing or delay initiatives, stressing long-term financial flexibility.

Rising leverage

Increasing debt and a softer equity ratio raise interest and refinancing sensitivity. Greater leverage narrows financial flexibility for bid financing, program ramp-ups or delays, and can amplify downside risk if revenue growth or margins slow.

Dependence on tendering and long program cycles

Reliance on institutional tenders and long development-to-production timelines creates lumpy revenue and conversion risk. This structural exposure can delay cash realization, complicate forecasting, and increase working capital pressure during program transitions.

Apollo Micro Systems Ltd. Business Overview & Revenue Model

Company Description

Apollo Micro Systems Limited designs, develops, assembles, and tests electronic and electro-mechanical solutions in India. The company provides DSP products, missile hardware simulators, integrated avionics modules, generic PCM encoders and decoders, DSSS de-modulators, seeker electronics, RPF and signal processing systems, turret control and power units, missile interface units, launcher controllers, launcher interface units, tiger sharc DSP-signal processors, quad actuator controllers, fault tolerant and system relay boxes, and DSP controllers. It offers ESM-eagle kit, embedded arss, PSU, and auxiliary controllers; and integrated payload checkout systems, satellite data simulators, high speed frame synchronizers, time code readers/generators, bit synchronizers, monopulse tracking receivers, PCIE-HSDR systems, PCM-two channel decommutators, PCIe based two channel data acquisition cards, and PCI-X based two channel serial data acquisition cards. It also offers avionics solutions; public address display systems, warning systems, vehicle tracking solutions and command control solutions, mine management systems, weight-in-motion systems, tyre care products, passenger information systems, and station announcement systems; Ethernet, base band modules, converters, USB/Ethernet protocol converters, dual data bus couplers, data bus solutions, and various formulas; and solar street lighting, CCTV surveillance, vehicle tracking, boom barrier, RFID fleet management, UAV detecting and jamming, GSM interception, Wi-Fi interception, lawful interception, and portable x-ray inspection systems, as well as passenger information displays, wall radar, reactive convoy and stationary jammers, and portable and stationary bomb jammers. The company provides electronic manufacturing, hardware design, IT and software, and electronic and mechanical CAD services; and weapon, platform, and other system integration services. The company was incorporated in 1985 and is based in Hyderabad, India.

How the Company Makes Money

Apollo Micro Systems makes money primarily by executing project- and contract-based work for government/defence organizations and industrial customers, where revenue is recognized through the delivery of engineered electronic products, subsystems, and integrated solutions. Key revenue streams include: (1) Sale and integration of mission/safety-critical electronics and subsystems: earnings from designing and supplying customized embedded electronics, rugged computing, displays, communication systems, and other field-deployable hardware, often bundled with integration, testing, and qualification activities required for defence/aerospace use. (2) Engineering services and development programs: income from design-and-development (including prototyping, validation, and certification/qualification support) performed for customer-specific requirements, typically tied to milestones or deliverables under contracts. (3) Production/series orders and repeat business: once a product/subsystem is accepted for a platform/program, the company can generate revenue through follow-on manufacturing and supply for the program’s production and spares over time. (4) After-sales support and lifecycle services: revenue from maintenance, repairs, upgrades/retrofits, spares, and technical support for deployed systems, where applicable. Significant factors influencing earnings are the company’s exposure to large institutional customers (often with tendering and long project cycles), the conversion of development engagements into production orders, and the timely execution/delivery of contracted milestones. Specific material partnerships, customer-wise revenue concentration, or program-wise contributions are null.

Apollo Micro Systems Ltd. Financial Statement Overview

Summary

Apollo Micro Systems Ltd. demonstrates strong revenue growth and improving profitability, supported by efficient operations. Despite increased leverage, the balance sheet remains stable with growing equity. Cash flow management shows positive trends, although capital expenditures are high, impacting free cash flow. Overall, the financial health is solid with room for improvement in cash flow management.

Income Statement

Apollo Micro Systems Ltd. has demonstrated robust revenue growth, increasing from 2,431 million in 2022 to 5,649 million in 2025. The company has maintained a healthy gross profit margin, reaching approximately 22.7% in 2025. Notably, the net profit margin improved significantly, rising from 6% in 2022 to 10% in 2025, indicating improved profitability. EBIT and EBITDA margins also show healthy growth, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio indicates moderate leverage, with total debt rising but remaining manageable in relation to equity. Stockholders' equity increased, reflecting a strong equity position. However, the equity ratio slightly declined due to the increase in total assets, suggesting a more leveraged balance sheet over time. Return on equity has improved, enhancing shareholder value.

Cash Flow

Operating cash flow has improved from negative to positive, showing signs of operational efficiency. However, the free cash flow remains negative, impacted by significant capital expenditures, which could pose a risk if not managed carefully. The company has a strong operating cash flow to net income ratio, indicating effective cash generation relative to reported earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.70B	5.62B	3.72B	2.98B	2.43B	2.03B
Gross Profit	1.92B	1.28B	884.04M	666.85M	445.64M	522.37M
EBITDA	1.78B	1.32B	702.31M	616.92M	462.77M	390.30M
Net Income	818.87M	563.96M	311.19M	187.50M	146.22M	102.54M
Balance Sheet
Total Assets	17.82B	12.99B	9.56B	6.93B	5.99B	5.32B
Cash, Cash Equivalents and Short-Term Investments	674.02M	624.78M	275.44M	2.49M	3.43M	1.28M
Total Debt	3.61B	3.35B	2.08B	1.44B	1.16B	1.17B
Total Liabilities	7.04B	6.92B	4.37B	3.08B	2.79B	2.26B
Stockholders Equity	10.79B	6.07B	5.19B	3.83B	3.19B	3.05B
Cash Flow
Free Cash Flow	-3.81B	-850.37M	-1.32B	-488.92M	205.70M	-162.31M
Operating Cash Flow	-1.90B	112.73M	-784.91M	-154.78M	439.99M	61.90M
Investing Cash Flow	-2.57B	-952.43M	-588.82M	-347.57M	-249.84M	-226.66M
Financing Cash Flow	4.24B	1.24B	1.37B	509.51M	-187.99M	165.15M

Apollo Micro Systems Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 271.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:APOLLO, the sentiment is Negative. The current price of 271.95 is above the 20-day moving average (MA) of 221.86, above the 50-day MA of 235.93, and above the 200-day MA of 243.48, indicating a bearish trend. The MACD of -10.27 indicates Positive momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 10.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:APOLLO.

Apollo Micro Systems Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTARTECH	69 Neutral	₹110.05B	53.56	―	―	12.06%	16.16%
CYIENTDLM	63 Neutral	₹24.85B	73.43	―	―	9.86%	21.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	60 Neutral	₹62.82B	44.93	―	―	46.80%	201.41%
APOLLO	59 Neutral	₹72.99B	98.55	―	0.09%	39.76%	55.23%
AXISCADES	59 Neutral	₹61.93B	50.75	―	―	11.17%	90.62%
CENTUM	55 Neutral	₹41.85B	-13.94	―	0.25%	10.29%	―

Apollo Micro Systems Ltd. Corporate Events

Apollo Micro Systems Plans Institutional Investor Meets and Plant Visit in Hyderabad

Apollo Micro Systems Ltd. has scheduled a series of institutional investor and analyst interactions in Hyderabad on March 11, 13 and 16, 2026, comprising group meetings, one-on-one discussions and a plant visit. The company said only its published earnings presentation and other publicly available information will be shared, signaling an effort to enhance investor engagement and transparency while explicitly avoiding any discussion of unpublished price-sensitive information, with any changes to the schedule to be disclosed to the exchanges.

By organizing these physical meetings, Apollo Micro Systems is strengthening its communication with institutional stakeholders and aligning with best practices in corporate disclosures. The initiative may help deepen investor understanding of its operations and strategy, potentially supporting market confidence without breaching regulatory norms on selective disclosure.

Apollo Micro Systems Schedules March Institutional Investor Meets in Hyderabad

Apollo Micro Systems Ltd., the Hyderabad-based listed technology and engineering solutions company, has announced a series of investor and analyst interactions to be held in mid-March 2026. These meetings underscore the company’s engagement with institutional stakeholders and its ongoing efforts to maintain transparency through regular disclosures and plant visits.

The company will hold physical group and one-on-one meetings with investors, analysts, CIOs, and fund managers in Hyderabad on March 11, 13, and 16, 2026, accompanied by a plant visit. Management has clarified that only the latest earnings presentation and other publicly available information will be discussed, with no unpublished price-sensitive information to be shared, aligning the outreach with regulatory compliance under SEBI’s disclosure norms.

Apollo Micro Systems Plans Investor Meetings and Plant Visit in Hyderabad

Apollo Micro Systems Ltd. has scheduled a series of physical meetings with institutional investors, analysts, CIOs and fund managers in Hyderabad on March 11, 13 and 16, 2026, which will include group sessions, one-on-one interactions and a plant visit. The company said it will restrict discussions to its published earnings presentation and other publicly available information, emphasizing that no unpublished price sensitive information will be shared and that any changes to the schedule will be communicated to the stock exchanges, underscoring its commitment to regulatory compliance and transparent investor relations.

Apollo Micro Systems to Use Existing Q3 FY2026 Deck for Investor Meetings

Apollo Micro Systems Limited has notified the stock exchanges that upcoming interactions with analysts and institutional investors will use its existing Q3 FY2026 investor presentation. The presentation, already disclosed to the exchanges and hosted on the company’s website, will serve as the reference material for these meetings, indicating that no new or updated document is being issued for the engagement.

The disclosure is made pursuant to Regulation 30 and related provisions of SEBI’s Listing Obligations and Disclosure Requirements, underscoring the company’s adherence to transparency and timely communication standards. By relying on the previously published presentation, Apollo Micro Systems signals continuity in its disclosed business and financial narrative, with no incremental information specifically prepared for this round of investor interactions.

Apollo Micro Systems posts strong Q3 FY26 unaudited results, publishes newspaper extracts

Apollo Micro Systems has published extracts of its consolidated and standalone unaudited financial results for the quarter and nine months ended 31 December 2025 in leading English and Telugu newspapers, in compliance with SEBI’s listing and disclosure regulations. The company reported strong year‑on‑year growth in revenue and profitability on both a consolidated and standalone basis, underscoring continued operational momentum, while directing investors to stock exchange and company websites for full financial details.

The latest quarter’s consolidated revenue from operations rose to about ₹2,522 crore with net profit after tax of roughly ₹229 crore, and earnings per share improving versus the prior year period. On a standalone basis, revenue and profit also increased, with higher earnings per share and expanding other equity, signalling a strengthening balance sheet and potentially bolstering confidence among shareholders and market participants.

Apollo Micro Systems Subsidiary Wins ₹4,208.96 Million Explosives Orders

Apollo Micro Systems Limited announced that its step-down subsidiary, IDL Explosives Limited, has secured a running contract to supply bulk explosives to subsidiaries of Coal India Limited worth INR 4,193.96 million, along with an additional export order of INR 15 million for cartridge explosives. The cumulative order value of INR 4,208.96 million represents a significant business win for the explosives arm of the group, strengthening its order book, reinforcing its vendor position with Coal India’s ecosystem, and supporting revenue visibility from both domestic and export customers.

Apollo Micro Systems Wins INR 1002.47 Million Defence UAS Orders

Apollo Micro Systems Limited has secured orders worth INR 1,002.47 million from a private company for the supply of Unmanned Aerial Systems destined for the Ministry of Defence. The contracts, to be executed within four months in the normal course of business, enhance the company’s order book in defence-related unmanned systems and underscore its role as a key supplier to India’s defence ecosystem, with potential positive implications for revenue visibility and stakeholder confidence in the near term.

Apollo Micro Systems Director to Appear on ET Now’s ‘The Market’

Apollo Micro Systems Limited has notified the stock exchanges that its Whole Time Director – Operations, Addepalli Krishna Sai Kumar, will appear as a guest on ET Now’s show “The Market” on Tuesday, 23 December 2025, at 9:50 a.m. The televised interaction with anchors Ayesha Faridi and Hersh Satya will be limited to publicly available information, with the company explicitly stating that no unpublished price sensitive information will be discussed. The company also indicated that the schedule could change due to exigencies and that any revisions would be promptly communicated to the exchanges, underscoring its focus on regulatory compliance and transparent communication with analysts and institutional investors.

Apollo Micro Systems Wins DRDO Tech Transfers for Directed Energy Weapon Systems

Apollo Micro Systems has secured two technology transfer approvals from India’s Defence Research & Development Organisation in the fast-evolving field of Directed Energy Weapon systems. The grants cover a multi-channel 10 kW laser-directed energy weapon platform from DRDO’s CHESS lab in Hyderabad and an electro-optical tracking system with EO sensors for DEW from DRDO’s IRDE lab in Dehradun. These technologies will allow the company to design, manufacture and support critical DEW subsystems, bolstering its capabilities in high-energy laser engagement and precision tracking solutions and deepening its role in India’s indigenous advanced weapon systems ecosystem, in line with national defence priorities and self-reliance goals.